System and method for presenting price movements before or following recurring historical events

Abstract

Computer systems and methods handling information about price movements of a financial instrument before or following a recurring historical event by specifying target financial instruments, recurring historical events, and computing returns of financial instruments each relative to a substantially single respective reference time, for a plurality of distinct times during a respective time period in proximity to a time of the respective prior occurrence. As described, the return of the financial instrument, at a given time, may show relative percentage change of a price of the financial instrument between the reference time and the given time, which may include specifying the target financial instrument and the historical event, for each of a plurality of respective prior occurrences of the historical event, accessing a set of price data of the financial instrument during a respective time period in proximity to a time of the respective prior occurrence, and determining a respective substantially single reference time. According to some embodiments, the method further includes effecting a re-scaling, where for each respective proximate time period, each respective accessed set of price data is re-scaled to a substantially common price or performance scale by computing, e.g., as a function of a price of the financial instrument at the distinct times and a price of the financial instrument at the respective reference time or historical events.

Description

BACKGROUND OF THE INVENTION [0001] 1. Field of the Invention [0002] The present invention relates to systems and methods for presenting historical information about price movements of financial instruments. [0003] 2. Description of the Related Art [0004] Traders, portfolio managers, investors and other market players are always seeking out improved techniques for predicting future prices and price movements of different financial instruments (e.g. securities, commodities, derivatives). One approach towards predicting future price movements is known as technical analysis. The proponents of technical analysis believe that financial instruments prices react to market events with a certain degree of consistency over time, and thus, future price movements can, in many situations, be forecast by studying past price movements. [0005] Although data describing past price movements is often readily available from automated information search and retrieval systems, detecting specific tradable ...

AI Technical Summary

Benefits of technology

[0011] The aforementioned needs are satisfied

Problems solved by technology

Although data describing past price movements is often readily available from automated information search and retrieval systems, detecting specific tradable patterns in price movements can be a challenging task.

Furthermore, even if one were to hypothesize that buying or selling a particular instrument at the time of the event is advisable, it is difficult determine from these graphs when the optimum time before or after the event to effect the purchase is, and it is difficult to determine the optimum horizon to maintain the position before taking profit.

Furthermore, it is difficult to determine from these graphs any relationship between the risk of buying or selling the asset and the potential payout.

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